The weighting is the hardest part.

Pre-open dive is finally resuming.

The reaction to this morning”s Employment Situation report was a 3-1/2 point blip-up to touch yesterday”s 2103.50 pre-open high. And then an 18-point slide that attacked Wednesday”s 2085.25 low to within 3 ticks.

The next hour ranged flat-to-higher up to 2094.00. That”s well under the 2095.50 bias-down signal, which triggered cleanly. But the 2088.00 bias-down target had been met, and held, so the bias-down signal was not renewed.

Usually, holding a test of the bias-down target through 10:15 will not trend down further during the bias environment — if at all. The exceptions tend to be on Fridays. In fact, the 2086.00 pre-open low is now being probed. Wednesday”s low is finally being retested, too, down to 2082.00. 

Stopping optimistically short of touching it before the open, from a contrarian perspective, is bearish. Trending up through the opening 15 minutes of volatility, through the 10:15 bias timing window, and through the entire first hour — but not recovering a relevant level like the bias-down signal — is also bearish from a contrarian perspective. And as described in previous posts, the past two days of bouncing from Wednesday”s opening plunge, also without gaining traction, is bearish.

This being a Friday, selling can become exacerbated. RSIs are oversold into a test of prior lows at 2082.00 and might produce a temporary bounce. The next lower objective in-play is 2079.25. If it”s tested and held by noon, then that might be the session low. Otherwise, vulnerability for extending to 2066.50 remains in-play.